Quarterly Outlook
Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
Summary: US equities slipped on Friday as debt ceiling talks stumbled, dampening investor sentiment. The S&P 500 dropped 0.1% and the Nasdaq 100 slid 0.2%. Regional banks faced pressure after suggestions from Treasury Secretary Yellen of mergers. Treasuries had a volatile session, initially declining but ultimately ending with higher yields. Chinese equities, particularly China Internet stocks, dragged down the Hang Seng Index by 1.4%. Alibaba was the worst hit. The USD traded weaker against major currencies due to Powell's remarks and stalled debt ceiling negotiations but USDCNH rose to as high as 7.075.